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Gibson Energy (GEI-T, Monday’s close $28.84) declined sharply from $28.34 to $10.96 between February and March 2020 (A–B), followed by a rapid rebound to $25.21 (C). Subsequently, the stock settled in a broad horizontal range, mostly between $18.50 and $28.00 (dashed lines).
Earlier this year, Gibson broke decisively above the range, reaching a high of $30.50 in March and signalling the start of a new uptrend (D). However, the stock was overbought at that time and is currently amid a correction. Only a sustained decline below the 40wMA – currently near $27 – would be considered negative. Meanwhile, a rise above $30.50-31.00 would signal the resumption of the uptrend.
A decisive rise above $30.50-31.00 would signal the resumption of the uptrend and project initial Point & Figure targets of $33 and $36. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com